(WEST DES MOINES) – In a speech today to the 73rd annual
meeting of the Iowa Taxpayers Association, Governor Chet Culver
addressed issues facing Iowa's economy, including improvements in the
State's fiscal management, diversification of Iowa's economy in areas
such as renewable energy, and reductions in government spending.
In his remarks,
Governor Culver announced steps he is taking to lower government
spending by up to $77 million. This includes the Governor's request of
the legislature to de-appropriate $37 million in funding for a new
state office building when they convene in January. Together, these
amounts represent a savings of 1.22 percent.
"My administration will
do everything we can to make sure state government continues to address
unmet needs statewide, and to explore the unlimited opportunities which
exist in our state," said Governor Culver. "To do this we must lock
arms, work together, and make sure Iowa's fiscal house
stays in order. I believe we will meet this goal, because of the strong
foundation we have built in terms of fiscal responsibility."
Added Governor Culver:
"When I became Governor, I set out two major goals for our State's
finances that we would achieve while delivering Iowans services that
they need. First, I committed to protecting, and growing, our cash
reserves, which today stand at $620 million. Second, I called for an
increase in our bond rating to Triple-A, a level attained by only ten
other states. We have done both inIowa."
In order to maintain
the State's record of strong fiscal management, the Governor directed
members of his Cabinet to identify cost-saving ideas in order to
increase the year-end budget balance to a responsible level. This is
necessary due to the national economic recession, the decline in
revenue growth, now projected to be just 1.0 percent for the current
fiscal year; and spending on disaster recovery.
After reviewing recommendations submitted by his departments, the Governor announced the following steps:
Freeze
personnel vacancies and new temporary positions, unless approved by
Department of Management (DOM), and reduce the amount of overtime.
- Freeze out-of-state travel, unless approved by DOM, and reduce in-state travel.
- Reduce equipment purchases, service contracts and office supplies.
- Cuts in spending by the Regents Institutions, Judicial Branch, and Legislature.
- Transfers made to General Fund since the last Revenue Estimating Conference meeting.
- Request the legislature to de-appropriate funding for a new state office building.
"The combination of
revenue declines, due to the economic downturn, and the financial needs
of disaster recovery meant that, without corrective action, we would
have been left with an ending balance of about $5 million dollars at
the end of this fiscal year," said Governor Culver. "That is simply not
enough."
In his remarks, the
Governor said that further adjustments may be necessary after a meeting
of the State's Revenue Estimating Conference on Friday. However,
Governor Culver was optimistic that Iowa would meet the economic challenges the state and nation are currently facing.
"The months ahead will
be a challenge, and we will be mindful of these challenges not only for
the remainder of this fiscal year but as we prepare the budget for next
year," said Governor Culver. "However, I believe among this challenge,
there is an opportunity. With our tradition of solid fiscal management,
innovation in government, and commitment to providing excellent public
services, we will continue to grow our economy and most of all help
build an unlimited future for Iowa."